ConocoPhillips (COP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 17,212,000 | 29,137,000 | 13,682,000 | -2,273,000 | 10,307,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 49,279,000 | 48,003,000 | 45,406,000 | 29,849,000 | 34,981,000 |
| Return on total capital | 34.93% | 60.70% | 30.13% | -7.61% | 29.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $17,212,000K ÷ ($—K + $49,279,000K)
= 34.93%
The return on total capital for Conoco Phillips has fluctuated over the past five years. In 2023, the return on total capital was 24.13%, showing a decrease from the previous year's exceptional performance of 42.22% in 2022. The return on total capital was also positive in 2021 at 19.38%, then turned negative in 2020 with a return of -3.58%. However, the company managed to improve its return in 2019, reaching 15.07%.
Overall, the return on total capital indicates the company's ability to generate profits from its total invested capital. The fluctuations in the return on total capital suggest varying levels of efficiency and profitability in utilizing the company's total capital resources over the years. It is important for Conoco Phillips to consistently monitor and improve its return on total capital to ensure sustainable financial performance and value creation for its shareholders.
Peer comparison
Dec 31, 2023